It was a bullish session on Wednesday, with the total crypto market cap returning to $900 billion levels. Headwinds linger, however, as recession fears grow.
It was a bullish Wednesday session for the crypto top ten. Bitcoin (BTC) continued to inch towards $21,000, last visited on June 28. SOL and ETH found the strongest support to lead the crypto top ten.
Investor jitters over a European economic recession continued to test support for riskier assets. The ongoing war in Ukraine and an energy crisis amidst a shift in central bank monetary policy remain tests of investor resilience.
However, the markets brushed aside the market headwinds, with positive US economic indicators supporting the equity and crypto markets.
At the time of writing, the NASDAQ 100 Mini was down 29.5 points.
Another choppy session saw the crypto market cap fall to a low of $867 billion before jumping to a high of $908 billion.
NASDAQ 100 support was the key to a return to $900 billion levels. While bullish on the day, crypto market headwinds linger.
A global economic recession, a likely shift in the crypto regulatory landscape, and an extension of the crypto winter would test investor resilience. Fed monetary policy will also be a consideration over the near term.
SOL and ETH rallied by 4.67% and 4.80%, respectively, to lead the way, with BNB gaining 3.38%.
ADA (+1.09%), BTC (+1.91%), DOGE (+1.89%), and XRP (+2.15%) trailed the front runners.
From the CoinMarketCap top 100, THORChain (RUNE), The Sandbox (SAND), and STEPN (GMT) led the way. RUNE rallied by 9.5%, with SAND and GMT gaining 6.5% and 6.8%, respectively.
At the other end of the table, TerraClassicUSD (USTC) saw the heaviest loss for a second consecutive day, sliding by 13%.
Total Crypto Liquidations Reflect Improving Market Conditions
24-hour liquidations fell back going into the Thursday session.
This morning, 24-hour liquidations stood at $101 million, down from $170.7 million on Wednesday.
Liquidated traders over the last 24 hours also decreased. At the time of writing, liquidated traders stood at 30,986 versus 54,606 on Wednesday morning.
However, one-hour liquidation figures suggested deteriorating market conditions at the turn of the day.
According to Coinglass, one-hour liquidations stood at $24.4 million versus $3.31 million on Wednesday. Investors will need to monitor the one-hour liquidation figures for any further rise that could pressure the crypto market.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.